Europe Industrial Gases Market Outlook, 2029

Europe Industrial Gases Market Outlook, 2029

The European industrial gases market is a mature and well-established sector, playing a critical role in supporting various industries across the continent. Industrial gases encompass a diverse range of elements and compounds, including atmospheric gases like oxygen and nitrogen, as well as specialty gases with unique properties used in specific applications. These gases are essential for numerous industrial processes, from metal fabrication and welding to chemical production and food processing. The European industrial gases market caters to this demand by providing a reliable and efficient supply of gases to businesses across various sectors. One of the most distinctive characteristics of the European industrial gases market is the presence of a strong focus on environmental sustainability. European nations are at the forefront of implementing stricter environmental regulations and promoting eco-friendly practices within their industries. This focus on sustainability translates into a growing demand for ""green"" industrial gases and production processes within the European market. For instance, there's a rising demand for biogas, a renewable alternative to traditional natural gas used as a feedstock for industrial gas production. Biogas is produced from the decomposition of organic matter and offers a lower carbon footprint compared to fossil fuels. Additionally, the use of renewable energy sources like solar and wind power to generate electricity for powering industrial gas production facilities is gaining traction. This shift towards renewable energy sources helps minimize the environmental impact associated with industrial gas production. Furthermore, the European market is witnessing a growing adoption of closed-loop gas recovery and recycling systems. These systems capture waste gas generated during industrial processes and re-purify it for reuse. This approach minimizes the need for virgin gas production and reduces overall environmental impact. Manufacturers of industrial gas equipment are actively developing and deploying these closed-loop systems, catering to the growing demand for sustainable solutions within the European market. The emphasis on environmental sustainability extends beyond just production processes. The life cycle assessment of gas usage is becoming increasingly important. European businesses are evaluating the environmental impact of different gases throughout their entire life cycle, from production and transportation to end-use applications. This holistic approach to environmental responsibility is shaping the demand for specific gas types and production methods within the European industrial gases market.

According to the research report, “Europe Industrial Gases Market Outlook, 2029,” published by Bonafide Research, the Europe Industrial Gases market is anticipated to add to more than USD 8.15 Billion by 2024–29. One of the defining characteristics of the European industrial gases market is the presence of a well-established network of global and regional gas suppliers. Several leading multinational corporations, alongside prominent regional players, dominate the market landscape. These companies possess extensive expertise in gas production, storage, and distribution, ensuring a consistent and reliable supply of industrial gases to customers across Europe. Furthermore, the presence of a mature regulatory framework governing gas production, safety standards, and environmental considerations fosters a stable and predictable market environment. This combination of established players and a robust regulatory framework underpins the European industrial gases market's strength and reliability. The European industrial gases market is also witnessing a trend towards increased collaboration between gas suppliers and their industrial customers. This collaborative approach focuses on optimizing gas usage and minimizing waste within specific production processes. Gas suppliers are offering tailored solutions, including on-site gas generation plants and process optimization consultations, to help customers reduce their overall gas consumption. Additionally, advancements in digital technologies like data analytics and remote monitoring allow for real-time tracking of gas usage and identification of potential inefficiencies. This collaborative approach fosters a win-win situation for both gas suppliers and industrial customers, ensuring a sustainable and efficient supply chain within the European market.

Market Drivers

• Growing emphasis on automation and Industry 4.0: Manufacturing across Europe is increasingly adopting automation technologies to enhance efficiency, productivity, and reduce labor costs. This translates to a rising demand for advanced metal fabrication equipment, including robotic welding systems, laser cutting machines, and CNC machining centers. Governments in some European countries are also implementing initiatives to support the adoption of Industry 4.0 technologies, further propelling the market for advanced metal fabrication equipment. This focus on automation necessitates the development of user-friendly and adaptable equipment that can integrate seamlessly into existing production lines within European manufacturing facilities.
• Resurgence of the manufacturing sector in certain European regions: While outsourcing of manufacturing to lower-cost economies was a trend in the past, recent years have witnessed a trend of ""reshoring"" in some European countries. Factors like rising labor costs in Asia, concerns over supply chain disruptions, and a growing emphasis on product quality are leading some companies to bring production back to Europe. This trend creates a demand for modern and efficient metal fabrication equipment to support these reshored manufacturing operations. Furthermore, a focus on high-precision components and complex metalwork in industries like aerospace and medical devices necessitates advanced fabrication technologies, driving demand for specialized equipment within the European market.

Market Challenges

• Stringent regulatory environment surrounding waste management and recycling: Industrial gas production often generates waste products that require proper disposal or recycling. Complying with these regulations can be costly for industrial gas companies and necessitates investments in advanced waste treatment technologies. Developing innovative solutions for waste minimization and exploring closed-loop recycling processes can help industrial gas companies navigate these stringent regulations and potentially even gain a competitive edge through sustainable waste management practices.
• Consolidation of the European manufacturing sector: In recent years, there has been a trend of large European manufacturers relocating production facilities to regions with lower labor costs. This can lead to a decrease in demand for industrial gases within Europe, particularly in countries that traditionally housed heavy manufacturing industries. Industrial gas companies need to adapt their strategies to cater to the evolving landscape of the European manufacturing sector, potentially focusing on providing specialized gas solutions for high-value production processes that remain within Europe.

Based on the report, the Industrial Gases market is segmented into Oxygen, Nitrogen, Hydrogen, Carbon Dioxide and Acetylene.

Oxygen and nitrogen form the bedrock of the European industrial gases market, accounting for the largest share. Oxygen plays a crucial role in various industrial processes, including steel production, metal fabrication, and glass manufacturing. The European steel industry, a vital sector for the region's manufacturing base, relies heavily on oxygen for oxy-fuel cutting and steelmaking processes. Similarly, nitrogen finds application in inert gas purging to prevent oxidation during welding and heat treatment, as well as in the creation of controlled atmospheres for food preservation and pharmaceuticals packaging within the European market. These well-established applications for oxygen and nitrogen ensure their continued dominance within the industrial gases segment. Hydrogen represents a segment with significant growth potential in Europe. The growing focus on clean energy solutions is driving demand for hydrogen, particularly in applications like fuel cell technology for electric vehicles and green hydrogen production for sustainable energy generation. Government initiatives promoting hydrogen infrastructure development and renewable energy sources further contribute to the projected growth of the hydrogen segment within the European market. Carbon dioxide (CO2) finds application in various sectors, including the food and beverage industry for carbonation of beverages and modified atmosphere packaging to extend shelf life of food products. The European Union's focus on reducing food waste aligns with the use of CO2 for extended shelf life, potentially contributing to a stable demand within this segment. However, stricter regulations on CO2 emissions necessitate the adoption of carbon capture and storage technologies, which could lead to a more sustainable use of CO2 within the European market. Acetylene, traditionally used in oxy-fuel cutting and welding applications, is experiencing a decline in demand due to the growing adoption of safer and more efficient alternatives like oxygen-fuel cutting processes. However, niche applications for acetylene persist in specific metalworking tasks. Other gases, including ammonia, methane, butane, and propane, cater to specialized applications within the European industrial gases market. Ammonia plays a vital role in the production of fertilizers and certain chemicals. Methane serves as a natural gas source for industrial heating and power generation. Butane and propane are often used in liquefied petroleum gas (LPG) applications for industrial heating and fuel for forklifts.

According to the report, the Industrial Gases market is segmented into Manufacturing Industry, Chemical Industry, Metal & Mining Industry, Energy & Power Industry, Food & Beverage Industry and Healthcare Industry.

The Metal & Mining Industry stands out as the leading consumer of industrial gases in Europe. This dominance is driven by several factors. Europe boasts a well-established and technologically advanced metal fabrication sector, particularly in Germany, Italy, and France. These industries rely heavily on industrial gases like oxygen, nitrogen, argon, and carbon dioxide for various processes like welding, cutting, inerting furnaces, and metal forming. Furthermore, the European mining industry utilizes industrial gases for flotation separation processes and controlled blasting operations. Stringent environmental regulations within Europe also necessitate the use of specific industrial gases for emission control in the metal and mining industries. These factors combine to position the Metal & Mining Industry as the undisputed leader in industrial gas consumption within Europe. The Manufacturing Industry, encompassing a broad range of sub-sectors, represents another significant consumer of industrial gases. In the automotive industry, for instance, inert gases like argon and nitrogen are used for welding, brazing, and heat treatment processes during car part production. The aerospace industry utilizes specialized gases like helium for leak detection and purging of fuel tanks in aircraft. Chemical manufacturing relies on various industrial gases for inerting reaction vessels, creating controlled atmospheres, and purging pipelines. The diverse applications of industrial gases across various manufacturing sub-sectors contribute significantly to the overall market demand within Europe. The Chemical Industry itself is a prominent consumer of industrial gases. Bulk gases like oxygen, nitrogen, and hydrogen are used as essential elements in various chemical reactions. Inert gases like nitrogen are employed to prevent oxidation and ensure product purity. Additionally, the growing hydrogen economy in Europe, driven by renewable energy integration and decarbonization goals, is creating a new demand for industrial-grade hydrogen for use in chemical processes. The close synergy between the chemical industry and industrial gas suppliers is fostering continued growth within this segment of the European market. The Energy & Power Industry presents a growing opportunity for the industrial gases market. The increasing adoption of natural gas for power generation necessitates nitrogen for pipeline purging and inerting during maintenance activities. Furthermore, the emerging hydrogen power sector utilizes hydrogen as a clean fuel source, creating a demand for industrial-grade supplies. Additionally, the ongoing transition towards renewable energy sources like wind and solar power requires specialized gases for inerting wind turbine gearboxes and maintaining the efficiency of solar panels. The transformation of the European energy sector is shaping a new demand profile for industrial gases within this segment. The Food & Beverage Industry and Healthcare Industry represent smaller yet crucial segments within the European industrial gases market. In the food and beverage sector, gases like carbon dioxide are used for carbonation of soft drinks, modified atmosphere packaging to extend shelf life of products, and inerting during food processing to prevent spoilage. The healthcare industry utilizes medical-grade gases like oxygen for respiratory therapy, anesthesia, and other critical medical procedures. While these segments might represent a smaller overall consumption volume compared to leading industries, they contribute to the diversification and overall growth of the European industrial gases market. Finally, the ""Other"" segment encompasses a diverse range of end-user industries with niche applications for industrial gases. This segment can include electronics manufacturing, where inert gases are used for creating controlled atmospheres during chip fabrication. The glass industry utilizes oxygen for efficient glass production processes.

Based on the report, the major countries covered include Germany, the UK, France, Italy, Spain, Russia, and the rest of Europe.

Germany's well-established industrial base and focus on innovation solidify its position as the leading country within the European industrial gases market. Several key factors contribute to this dominance. Firstly, Germany boasts a robust and diversified manufacturing sector encompassing industries like automotive, chemicals, and machinery. These industries are major consumers of industrial gases, such as oxygen, nitrogen, and hydrogen, used in various production processes like welding, metal cutting, and inert atmospheres. The sheer scale and diversity of German manufacturing create a constant and high demand for industrial gases, fueling the overall market within the European region. Secondly, Germany is a leader in technological advancements and research & development within the industrial gas sector. German companies are at the forefront of developing new gas applications and exploring innovative production methods. This focus on innovation translates into a wider variety of high-purity gases and specialty gas mixtures available in the market. These specialized gases cater to cutting-edge applications in sectors like electronics manufacturing, pharmaceuticals, and renewable energy, further strengthening Germany's position as a hub for advanced industrial gas solutions within Europe. Furthermore, Germany benefits from a well-developed infrastructure network that facilitates efficient gas distribution. An extensive pipeline network allows for bulk gas delivery to major industrial centers, ensuring a reliable and cost-effective supply for large-volume gas users. Additionally, a strong network of gas production facilities and established distribution companies ensures timely delivery and readily available gas supplies for businesses across the country. This robust infrastructure network is crucial for supporting the high demand for industrial gases within the German market. Finally, stringent safety regulations and a focus on environmental sustainability play a significant role in shaping the German industrial gases market. German gas suppliers adhere to rigorous safety standards, ensuring the safe handling, storage, and transportation of industrial gases. Additionally, there's a growing emphasis on eco-friendly production methods and the utilization of renewable energy sources in gas production processes.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Industrial Gases market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Oxygen
• Nitrogen
• Hydrogen
• Carbon Dioxide
• Acetylene
• Other Types (Ammonia, Methane, Butane, And Propane)

By End user Industry
• Manufacturing Industry
• Chemical Industry
• Metal & Mining Industry
• Energy & Power Industry
• Food & Beverage Industry
• Healthcare Industry
• Others

By Mode of Distribution
• On-Site pipe line
• By Bulk
• By Cylinder

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Industrial Gases industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.
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